Matthew Dow
Small-cap, value, long only, growth at reasonable price

Liquidity Services: Looks To Be A Good Value Play For 2014

Liquidity Services (NASDAQ:LQDT) operates a number of auction websites which are used by large private companies, the US federal government, and also state and local governments for the disposal of unwanted assets. These are typically used products or unsold inventory that are being sold at wholesale prices to commercial buyers. Some examples of disposed assets include: computers, consumer electronics, apparel or scrap metals.

Recently the stock has sold off down close to 52-week lows, and the company now trades at an EV/EBITDA valuation of about 7x. This sell-off was due to results released at the end of November were worse than Wall Street analysts were expecting. In particular, forward guidance projected that top-line growth would slow to a...

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